// Tesco receives heated responses from food suppliers over chairman John Allan’s comments
// Allan blasted some food suppliers for using inflation as an excuse raise prices further than necessary
Tesco has seen food suppliers respond to chairman John Allan’s comments on raising prices unnecessarily amid high inflation.
Allan said on Monday that some food suppliers may be using inflation as an excuse increase prices further than necessary.
He said it was “entirely possible” that suppliers were taking advantage of poorer households.
However, the Food & Drink Federation (FDF) said Allan’s comments are “difficult” and the suppliers it represents have recorded a “massive” increase in their costs.
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FDF chief executive Karen Betts said supermarkets are already “very tough” on suppliers, BBC News reported.
“Most supermarkets are asking suppliers to open their books to justify exactly line-by-line where the cost increases are coming in,” Betts said.
“So I think it is difficult for Tesco to come out and say they think companies might be profiteering.”
National Farmers Union (NFU) president Minette Batters said she is “baffled” by Allan’s comments.
“It was almost like living in a parallel universe,” she said.
“We are seeing wholesale gas prices 650% higher than back in 2019 and the cost inflation on the back of that has been unprecedented.
“This has dwarfed any price increases to date.”
Allan said on Monday that Tesco had “fallen out” with “a number of suppliers” after “robust” discussions over price rises.
It comes after goods including Whiskas and Pedigree petfood, along with Heinz beans and ketchup, had disappeared from Tesco’s shelves last year following a pricing row.
